The Financial Conduct Authority of UK (FCA) has released a series of temporary measures to help insurance customers in financial difficulty to maintain their coverage.
FCA interim executive director (strategy and competition) Sheldon Mills in a press release issued on 14 May 2020 said, “We have worked quickly to draw up measures to help policyholders in financial difficulty because of coronavirus.
He said, “Many firms in the insurance industry have already taken some of the actions we are suggesting now to support customers, such as premium reductions, discounts, waiving fees, and payment deferrals. The measures confirmed today will provide urgent support to those that need it.”
The new measures will come into force on 18 May 2020 and will be reviewed in the next three months in the light of developments regarding coronavirus and may be revised if appropriate.
Mr Mills said, “Firms should make clear in their communications, including on their websites and apps, the different solutions available to customers, and encourage them to make contact if they are experiencing temporary financial difficulties.
“Customers who are struggling to afford their insurance or premium finance payments because of the impact of coronavirus, should contact their insurer or insurance broker to discuss options. It is important people do not leave themselves uninsured and should not hesitate to contact their insurer.”
Commenting on the measures announced by FCA, the Association of British Insurers said, “As the FCA has recognised, since the start of the pandemic, insurers have taken wide-ranging action to support customers who may be facing financial difficulty.
“We have also set-up industry wide pledges in motor, home, travel, pet and business interruption insurance to assist customers during this difficult time.”